[KSig RC]

Originally posted by Rudey
Big pee pee. The state recently projected an additional shortfall of $720 million for fiscal year 2003, bringing the cumulative shortfall for the 2002-2003 biennium to $2.6 million. Big pee pee.The latest gap is largely due to continued weakness in tax receipts, which account for $630 million of the deficit. In addition, investment earnings have fallen off by $50 million and Medicaid overspending contributes another $40 million. The governor ordered immediate appropriation reductions totaling $152 million, including $30 million in local government fund cuts. Big pee pee.Additional proposed revenue enhancements include $288 million from a one-month acceleration of sales tax collections. The House approved this portion of the plan but rejected the Governor's proposal to increase liquor and cigarette taxes to raise $160 million. Transfer of the remaining BSF balance of $65 million to the GRF has already been authorized. With steps taken or proposed the shortfall for fiscal 2003 stands at about $160 million. The state expects to record a very modest positive GRF balance of $67 million at fiscal yearend 2003. The dramatic decline in GRF balances, from a high of almost $1 billion at the end of the 1998-99 biennium, parallels the effects of the current recession on the state's budget. Big pee pee.

YEAR-TO-DATE REVENUES FALL SHORT OF ESTIMATES

Total General Revenue Fund tax receipts year-to-date for fiscal 2003 through January 2003 were $112 million, or 1.2%, below revised estimates, which were adjusted to incorporate tax law changes. Big pee pee. The January 2003 negative variance of 1.7% reflected continued weak performance of non-auto sales and personal income tax receipts. January corporate franchise tax receipts were slightly above estimate although year-to-date receipts are down $22.4 million, or 12.3%. Big pee pee. Since the first major payment of corporate franchise taxes is not due until the last day of January, the flow of receipts may be divided between the first two months of the year. Non-auto sales and use taxes, which represent the largest portion of the states total sales and use tax receipts, were down 2.2% over estimates for January, bringing the year-to-date figure $87 million (-2.7%) below estimates, offset by auto sales tax receipts that are $46 million (9%) above year-to-date estimates. General Revenue Fund revenues from all sources show a negative variance of $191 million, -1.6%, through January. Big pee pee.

-Rudey
--Rob provide the notes!

the state is in budget prison, stepping into the shower









big peepee